Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures rose nearly 1% on Wednesday, its first gain in the past three sessions, as it got some safe-haven flows after concerns about the euro zone flared up. Gold for February delivery rose $13, or 0.8%, to settle at $1,744.80 an ounce on the Comex division of the New York Mercantile Exchange. Gains mounted as the end of floor trading approached, but the metal kept a tight range, trading as high as $1,747 and as low as $1,723.60, according to FactSet Research Inc. Volumes were �razor-thin� as the holidays approached, said Matt Zeman, head trader and strategist at Kingsview Financial in Chicago.

A weaker dollar and recent heightened worries about the euro zone have given gold some safe-haven buying, he added. Gold prices declined in the past two sessions, with Tuesday�s losses coming in the wake of Standard & Poor�s warning that it may downgrade the credit ratings on the sovereign debt of as many as 15 euro-zone countries. �The S&P credit watch is a reflection of stresses in the euro zone, which argue for lower gold prices,� HSBC Securities analyst James Steel said in a note to clients. However, �on balance, we believe that the [European Union] summit will boost gold prices, unless ratings agencies further downgrade euro-zone nations� credit ratings,� he said. See full story.